Three of the Most Common Tools of Financial Analysis Include

question 61

True/False

Three of the most common tools of financial analysis include horizontal analysis, vertical analysis, and ratio analysis.

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Definitions:

Last Year's Turnover

The total sales or revenues generated by a company during the previous year.

Net Operating Income

The profit generated from a company's usual business operations, excluding taxes and interest.

Division's

Relates to a section or branch of a company that operates semi-independently and focuses on a particular product line, market segment, or geographical area.

ROI

Return on Investment, a metric used to evaluate the efficiency of an investment or compare the efficiency of several investments.